Rohit Baniwal, writer
Brief news
- A tentative wage agreement was reached between the U.S. Maritime Alliance and dockworkers’ union, extending the current contract until January 15, 2025.
- The strike affecting East Coast and Gulf Coast ports has been resolved, alleviating supply chain issues.
- The agreement proposes a 61.5% wage increase over six years, with ongoing negotiations on port automation.
Detailed news
A tentative agreement on wages was reached between the United States Maritime Alliance and a significant union representing U.S. dockworkers on Thursday. The existing contract has been extended until January 15 to allow for the negotiation of a new contract.
The strike that had compromised the U.S. supply of fruits, automobiles, and other products and had impeded East Coast and Gulf Coast ports since the beginning of the week has been resolved by the action.
In a joint statement, the International Longshoremen’s Association and the United States Maritime Alliance, Ltd. announced that they have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025. The parties will then return to the bargaining table to address any remaining outstanding issues.
The strike had already begun to strain the U.S. supply chain during the week. CNBC previously reported that billions of dollars in products were anchored offshore due to the non-operation of ports, and thousands of containers had been deposited at the incorrect ports. The cost of shipping had already begun to increase.
The ILA’s inaugural strike since 1977 had an effect on 14 distinct terminals. This week, approximately 50,000 of the 85,000 members of the union were on strike. The union is requesting a $5 per hour increase for each year of the six-year contract, according to ILA President Harold Daggett in a statement issued on Tuesday.
According to sources who spoke with Lori Ann LaRocco on CNBC, the tentative agreement will result in a 61.5% increase in ILU compensation over the course of six years. Negotiations regarding port automation are ongoing.
Source : CNBC News
